delete Regulations Respecting the Indemnity of Investors
The Investors' Indemnity Regulations establish a government insurance scheme compensating individuals for losses on Canadian government securities when they pay but don't receive the security or redemption fails. Claims require Finance investigation, with payments over $5,000 needing Treasury Board approval. Coverage is conditional on assigning claims to the Crown.
This scheme imposes costs through moral hazard, taxpayer liability, market distortion of private insurance, bureaucratic inefficiency, and coercive claim assignment. It is an improper government guarantee that undermines accountability and market mechanisms for addressing contract breaches.